Rupee Opens:
Indian rupee opened marginally higher at 78.89 per dollar on Thursday against previous close of 78.96.
ICICI Direct
Indian markets are likely to witness a muted opening tracking weak global cues after data showed the US economy contracted in the quarter ended March 2022.
US markets ended marginally higher amid release of macroeconomic data.
Market at pre-open: Benchmark indices are trading mixed in the pre-opening session.
At 09:02 IST, the Sensex was up 234.77 points or 0.44% at 53261.74, and the Nifty was down 147.60 points or 0.93% at 15651.50.
Sebi allows FPIs to participate in exchange-traded commodity derivatives market
Markets regulator Securities and Exchange Board of India (SEBI) has allowed foreign portfolio investors (FPIs) to participate in the exchange-traded commodity derivatives market.
In the statement issued on June 29 after a meeting of the SEBI director board, the regulator has said the existing Eligible Foreign Entity (EFE) route, which required actual exposure to Indian physical commodities, has been discontinued. Any foreign investor desirous of participating in Indian ETCDs with or without actual exposure to Indian physical commodities can do so through the FPI route.
FII and DII data
Foreign institutional investors (FIIs) net sold Rs 851.06 crore worth of shares whereas domestic institutional investors (DIIs) remained net buyers to the tune of Rs 847.46 crore worth of shares on June 29, as per provisional data available on the NSE.
Gaurang Somaiya, Forex & Bullion Analyst, Motilal Oswal Financial Services:
Rupee fell to fresh all-time lows following broad strength in the dollar against its major crosses. Dollar rose despite consumer confidence number released from the US came in below estimates.
Euro and pound consolidated in a narrow range ahead of major central bank governor’s statement.
Today focus will be on the final GDP number; better-than-expected number could support the dollar at lower levels. We expect the USDINR to trade sideways but with a positive bias quote in the range of 78.70 and 79.20.
Trade Spotlight | What should you do with Orient Bell, Adani Transmission, Tejas Networks on Thursday?
At the current juncture, Adani Transmission has given a clean triangle breakout with positive volume picking up which hints at a further upside.
ICICI Direct
The rupee is expected to depreciate today amid strong dollar and worries about elevated crude oil prices.
Moreover, investors will closely watch initial jobless claims data as it is expected to drop from 229,000 to 228,000. USDINR is expected to trade in the range of 79.00 to 79.30
Dr Reddy’s: US court dismisses all claims & counterclaims pending in Indivior case
Dr Reddy’s Laboratories has informed that the conclusion of the patent litigation brought by Indivior Inc. and Indivior UK Limited, and Aquestive Therapeutics, Inc. relating to the Company’s generic buprenorphine and naloxone sublingual film, 2 mg/0.5 mg, 4 mg/1 mg, 8mg/2 mg, and 12 mg/3 mg dosages, a therapeutic equivalent generic version of Suboxone sublingual film in U.S.A.
On June 28, 2022 the U.S. Court dismissed all claims and counterclaims pending in the case with prejudice, pursuant to a joint stipulation of dismissal filed by the parties.
The stipulation of dismissal was filed pursuant to a settlement agreement that the company entered into with Indivior and Aquestive.
The settlement and dismissal resolves all claims between the parties, including Indivior’s and Aquestive’s claims for patent infringement as well as the Company’s antitrust counterclaim against Indivior.
In the previous trading session, the share closed down 0.26 percent or Rs 11.35 at Rs 4,363.30 on the BSE.
Euro under pressure
The euro struggled to regain a footing on Thursday, having tumbled overnight against a resurgent U.S. dollar, which benefited from safe-haven demand on renewed worries about higher rates and a global recession.
The euro was at $1.044, after losing 0.75% on the dollar the day before, and heading for a monthly decline of 2.7%.
Crude Price Updates
Oil prices were little changed on Thursday as markets weighed a rise in U.S. gasoline and distillate inventories and worries about slower economic growth amid concerns of supply tightness.
Brent crude futures for August dropped 25 cents, or 0.2%, to $116.01 a barrel in light trading as the August contract is set to expire on Thursday. The more-active September contract was at $112.18, down 27 cents, or 0.2%.
U.S. West Texas Intermediate (WTI) crude futures slid 19 cents, or 0.2%, to $109.58 a barrel.
Sugandha Sachdeva, Vice President – Commodity and Currency Research, Religare Broking
The Indian rupee has continued to move on the downhill journey since the beginning of the year, amid a backdrop of heavy foreign fund outflows from the domestic markets, strength in the safe-haven dollar towards two-decade highs, and firming crude oil prices.
The backdrop of heated inflation, prolonged Covid-19 lockdowns in China, the monetary tightening campaign of the key central banks, and supply chain disruptions caused by the Russia-Ukraine war are clouding the outlook for global economic activity and have led to steep depreciation of the rupee against the dollar by around 6.30% YTD.
Even as the rupee holds a depreciation bias in the near term, we envisage that the rupee would manage to reverse some of the losses in the second half of the year. Strong long-term fundamentals, political stability, and a large pile of forex reserves are likely to provide a cushion to the Indian rupee around the crucial 80 mark.
While our FX reserves have depleted by around $10bln in June, indicating that the RBI is proactively expending reserves to stem the sharp fall in the domestic currency, we still fare well in terms of import cover and other short-term debt obligations. However, RBI is opting for other measures too such as tightening monetary policy, which may arrest the rupee weakness.
